2005 Annual Report - Banque PSA Finance

New developments in the service business
The service business continued to expand rapidly in 2005. A
total of 1,133,936 contracts were sold, representing an increase
of 16.3% compared with the previous year’s 975,016.
The strongest gains were in automobile services, led by auto
insurance. Developed with the backing of specialist partners,
the auto insurance solutions marketed under the Peugeot and
Citroën brands are now available in nearly all the Bank’s host
countries. This expanded geographic reach drove an increase
in the number of policies sold to over 171,000 in 2005 from
37,200 in 2004.
10 Banque PSA Finance - 2005 annual report
BANQUE PSA FINANCE BUSINESS REVIEW
OUTSTANDING LOANS BY COUNTRIES
Outstanding loans at December 31, 2005 Outstanding loans at December 31, 2004
Wholesale Wholesale
(in millions of euros)
Countries
loans Retail loans Total loans Retail loans Total
Germany 638 2,461 3,099 587 2,198 2,785
Austria 87 180 267 88 150 238
Belgium-Luxemburg 306 635 941 301 591 892
Spain 703 2,340 3,043 578 2,330 2,908
France 1,514 6,613 8,127 1,502 6,278 7,780
Hungary 34 51 85 39 43 82
Italy 799 1,350 2,149 754 1,256 2,010
Netherlands 276 269 545 333 257 590
Poland 46 60 106 50 50
Portugal 150 435 585 143 414 557
United Kingdom 753 1,897 2,650 884 1,836 2,720
Slovakia 12 9 21 8 5 13
Switzerland 92 255 347 90 250 340
Czech Republic 33 55 88 31 33 64
Argentina 17 17 7 7
Brazil 80 226 306 33 112 145
Mexico 41 41
Total 5,564 16,853 22,417 5,421 15,760 21,181
Sales of other automobile services, including maintenance,
extended warranties and assistance, were up 5.6% over 2004.
In 2005, an average of 1.33 service contracts were sold for
every new or used vehicle financed. This was above the
average of 1.17 in 2004 and there is still room plenty of room
for growth, particularly in the countries of Western Europe
other than France. The Bank also intends to take advantage
of the latest European Union insurance directive to strengthen
its positions in local auto insurance markets as and when the
directive is incorporated in their national law.